The Congress discussed the challenges to the industry in the aftermath of the recent financial crisis. The Shariah Board in Islamic financial institutions provides an extra layer of oversight, and Islamic finance has continued its global expansion during the financial crisis, expanding at an average annual rate of 20 per cent and representing one of the fastest growing segments in the financial industry.
On financial reporting, Dr Zeti observed that applying the existing accounting frameworks and conventions to Islamic financial institutions may prove to be more challenging given the unique features of Islamic financial transactions such as the equity based and profit sharing contracts. She commended the work done by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in enhancing cross-border comparability of Islamic financial transactions and urged the International Accounting Standards Board (IASB) to engage in the process. At the same conference, IASB Chairman Sir David Tweedie had noted Islamic Accounting as one of the possible issues for the IASB's agenda post-2011.
Click for Dr Zeti's keynote address (link to website of the Malaysian Institute of Accountants).